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FACTORS AFFECTING ECONOMIC EFFICIENCY IN MAIZE PRODUCTION: THE CASE OF BORICHA WOREDA IN SIDAMA ZONE, SOUTHERN ETHIOPIA

Abstract: 

Maize is an important crop for food security in Ethiopia as a source of both food and income. Hence , due emphasis should be given required to enhance productivity through improvement of efficiency of resource usage in maize production, The objective of this paper was to determine the levels of economic efficiency of smallholder maize producers and to link the observed efficiency levels to farmers’ socioeconomic and institutional characteristics in Boricha Woreda, Southern Ethiopia. A multi-stage sampling technique was used to select 204 sample farmers who were interviewed using a structured questionnaire to obtain data pertaining to maize production during 2013. In the analysis, frontier 4.1c software was used to determine the levels of technical and economic efficiencies. Thus, the mean technical and allocative efficiencies were 72 and 70 percent, respectively while the mean economic efficiency was 53 percent. Furthermore, descriptive statistics, stochastic frontier and a two-limit Tobit regression models were employed. It was established from a stochastic frontier model that maize yield estimated using Cobb-Douglas production function was positively influenced by seed, labor, oxen, farm size, DAP and Urea fertilizers. Similarly, a Tobit model revealed that economic efficiency was positively and significantly affected by education, trainings, membership to cooperatives, utilization of credit, and family size whereas variables such as age, distance to extension center and market, livestock and off-farm income affected it negatively. Thus, the study recommended policies targeting training, membership to cooperatives development of markets, roads and education of smallholder maize producers that would promote economic efficiency of maize producers.

Corporate Author: 
Ethiopian Economics Association
Publisher: 
Ethiopian Economics Association
ISBN/ISSN: 
978-99944-54-42-10
Primary Descriptors: 

ECONOMIC EFFICIENCY 

Secondary Descriptor: 

efficiency, smallholder maize producers, SFA, two-limit Tobit regression

Geographic Descriptors: 
Ethiopia
Cataloge Date: 
10/21/2015
Broad Subject heading: 
Economic Efficiency
Serial Key Title: 
PROCEEDINGS OF THE FOURTH REGIONAL CONFERENCE OF THE SOUTHERN NATIONS NATIONALITIES AND PEOPLES REGIONAL STATE ECONOMIC DEVELOPMENT
Content type: 
Year: 
February 2015
Publication date: 
2015-02-10 00:00:00
Forum or Discussion date: 
2014-03-28 00:00:00
Conference Place: 
Hawassa
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Book
Current frequency: 
Annual
Chapter conference: 
Conference date: 
03/28/2014

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